In this episode we answer questions about startup accelerators. Accelerators are programs that promise to help improve your chances of startup success, but how do they actually work? We are here to help! In this episode we answer questions including:

• What do I get if I join an accelerator?
• How do I know if an accelerator is worth it?
• How do I get the most out of my accelerator?

All of these questions were submitted by listeners just like you. You can submit questions for us to answer on our website TheStartupHelpdesk.com or on X/Twitter @thestartuphd - we'd love to hear from you!

Reminder: this is not legal advice or investment advice.

Q1: What do I get if I join an accelerator?

Well-established accelerators typically provide:

• Cash: they typically invest. The amount varies and the terms are often on the lower side vs. what you could get from going directly to multiple investors to raise a round.
• Demo Day: the fastest way to 100 investor meetings. Accelerators host a showcase event for their startups and their network of investors to meet. This can be a huge value, helping you to line up investor meetings.
• Network: an accelerator immerses you into a network of fellow founders, investors, and company builders. They can provide mentorship and open doors for leads.
• Tools: accelerators may also provide tools to simplify how you connect with and benefit from the network.
• Healthy competition: working alongside and learning from other ambitious founders is a great way to create some healthy urgency for your startup.
• Serendipity: all of this combines to create new opportunities for you. If you put in the right kind of work, you may be surprised to see what doors open.

Q2: How do I know if an accelerator is worth it?

This is a critical question to ask; there are lots of snake oil salespeople.

Ask yourself what you need first:

• Need help fundraising? YC has shown that a premier accelerator can help with that; however, not every accelerator has shown they can help.
• Need help selling? Some industry or focused accelerators can help teach you.
• Need help recruiting? Some accelerators can help mostly through association with their brand.

Generally, there are cheaper ways to get the help an accelerator offers.

When evaluating the benefits, consider the following value that accelerators can offer:

• Cash: is it at least 6 figures?
• Demo day: are there plenty of examples of recent multi-million dollar rounds from the program?
• Network: are there well known alumni and speakers at their events?
• Tools: do alumni report using their tools?

Make sure the benefits they offer have substance.

Q3: How do I get the most out of my accelerator?

Set expectations with your co-founders about the desired outcome from the accelerator. Is it to accelerate sales? Is it to fundraise? Work backwards from your end goal so that you know where to prioritize your efforts.

Talk to founders that have been through the same accelerator – preferably before applying! Identify what the most successful companies did in the program and make a plan to do those things.

Once in the accelerator:

• Hit the ground running so you’re always at the front of your class.
• Take control of who you work with, rather than waiting for the accelerator to assign mentors.
• Be creative with your tests: your accelerator companions will be eager to help you amplify what you do!

In this episode we answer questions about building your sales team. Many startups sell their product via sales people, and building your sales team is one of the most important things you will do. We are here to help! In this episode we answer questions including:

• How do I hire my first salesperson?
• What is a sales commission plan?
• How do I know if a salesperson is doing well?

All of these questions were submitted by listeners just like you. You can submit questions for us to answer on our website TheStartupHelpdesk.com or on X/Twitter @thestartuphd - we'd love to hear from you!

Reminder: this is not legal advice or investment advice.

Q1: How do I hire my first salesperson?
To source candidates, consider various hiring platforms, such as Craigslist, Indeed, LinkedIn, ZipRecruiter, and Wellfound. Your network may have fantastic candidates. Ask fellow founders and investors. Check on people you have worked with previously.

To filter and evaluate candidates, start with a project, such as a PowerPoint sales pitch. Filter further via phone interviews, ultimately leading to an onsite.

Ash sparked some serious debate with his recommendation on the final phase of the hiring process! To combat the high attrition rate in sales and to hedge against the difficulty of predicting how well a new hire will work out, he suggested making 3 hires per sales role that you want to fill.

While making 3 hires per sales role may fit your hiring plan, we anticipate that most startups will hire one sales person per role.

Your first sales person will contribute to your startup culture. Set up this new hire for success. Before you hire your first salesperson, make sure you can clearly articulate a few key aspects of your business, such as:

• The problem you solve.
• Your customer profile.
• How your product solves their problem.
• Why current customers value your product.

If you do not know the answers to these questions, you are setting this first sales hire up for failure.

Q2: What is a sales commission plan?
Sales people get paid two ways: salary & commissions. A sales commission plan describes the income a sales person makes based on performance.

A simple example of a sales commission plan is to pay a sales person a % of the deal value that they close (i.e. 10% of all deals).

Companies like sales commission plans because they allow the business to both incentivize and reward performance. A good sales commission plan clearly ties performance to important areas of growth for the business.

The plan you choose is important because it provides specific incentives! Do you want your sales people chasing really big deals? Or should they prioritize a larger volume of little deals? Your sales commission plan can influence priorities.

Q3: How do I know if a salesperson is doing well?
It is hard to distill progress vs. noise. There are steps you can take to add more objectivity to your evaluation process:

• They should immediately shadow you in all deals.
• They should master your pitch in their first week or two.
• They should book lots of calls: ideally 10 a week.
• They should not focus their energy on a small number of marquee leads.
• They should use and update the existing sales playbook vs. going in a new direction.
• They should generate their own pipeline within a month.
• They should own their own deals after a month.
• They should move deals forward in their first quarter.
• If your sales cycle is less than 45 days, they should close their first deal in their first quarter.

Sales people need to be ROI positive, so they should pay for themselves fairly quickly.

In this episode we answer questions about raising money from Venture Capital funds. Many startup companies seek VC funding, but it can be a complex process if you haven't done it before. We are here to help! In this episode we answer questions including:

• Is a SAFE or priced equity round better?
• What's the recommended amount to raise at every stage?
• How do I meet investors to pitch?

All of these questions were submitted by listeners just like you. You can submit questions for us to answer on our website TheStartupHelpdesk.com or on X/Twitter @thestartuphd - we'd love to hear from you!

Reminder: this is not legal advice or investment advice.

Q1: Is a SAFE or priced equity round better?

There is no right answer that you can apply to every situation. A SAFE is often faster, less complex, and maintains more control for the founders. Because of their simplicity and the flexibility they offer to an unproven startup, SAFEs are a frequent choice for an early-stage startup that is still figuring out much of its business.

However, there are plenty of situations where a priced round makes sense. A priced round can provide more clarity about ownership and the present valuation of the company. However, this clarity adds complexity to the process. In addition to needing to negotiate with more precision about the valuation and ownership, a priced round usually involves a board seat for an investor. Thus, you are forcing your company to grow up a lot right now with a priced round.

Q2: What's the recommended amount to raise at every stage?

Consider raising as little as possible – enough to get to your next milestone so you can raise the next round. Capital is expensive!

While the round size can vary widely from one startup to the next, these are more common amounts that startups raise at key stages:

• Pre-seed - $250-$750k
• Seed - $1-3M
• Series A - $5-10M
• Series B - $15-25M
• Series C - Anything can happen

How do you which stage you are at today? It’s hard to know with complete confidence until you go out and raise!

Q3: How do I meet investors to pitch?

Volume is key when it comes to a successful fundraise. The following avenues are great channels for meeting investors:

• Warm intros from other entrepreneurs is the golden ticket.
• With high quality emails, cold outreach can generate a ~30% response rate.
• Conferences and events.
• Press.
• Customer referrals causing inbound.

Make it easy for people in your network to make warm intros: send an email blurb that they can easily copy and paste. And of course, consistently reach new milestones for your business – don’t forget that part of the equation!